1

Quest Diagnostics Completes Acquisition of Dignity Health

Diagnostic information services provider Quest Diagnostics (NYSE: DGX) announced yesterday that it had completed the acquisition of the clinical outreach services of Dignity Health, a California-based hospital.

Terms of the acquisition were not disclosed, but Quest said it would perform the testing for the non-hospital labs at its clinical laboratories in California and Nevada. Dignity's hospital-based labs were not included in the transaction.

So far this year, Quest has made three lab business acquisitions including Diginity's, having previously acquired the toxicology and clinical laboratory business of Humana subsidiary Concentra, and the clinical and anatomic-pathology outreach laboratory businesses of UMass Memorial Medical Center.

Quest expects the Dignity deal to be neutral to adjusted earnings this year while being modestly accretive to earnings per share in 2014. The company also said it expects it to contribute about half a percentage point to consolidated revenues annually. Quest Diagnostics generated approximately $7.4 billion in revenues in 2012.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.

Report This Comment

Sending report...

Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time.

Having made the streets safe for Truth, Justice and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. So follow me on Facebook and Twitter for the most important industry news in retail and consumer products and other great stories.